Up to $5,000 for greener homes: victim of its success, a federal subsidy is almost dry

People who want to take advantage of one of the federal grants to carry out renovations should hurry since everything suggests that due to the great popularity of the program, the government will no longer accept applications sometime in early 2024.

The Canadian Greener Homes Initiative offers up to $5,000 for renovation work aimed at improving energy efficiency.

This amount is added to that of the three provinces which offer a similar program, namely Quebec (Rénoclimat), Ontario and Nova Scotia.

The Initiative launched in 2021 is so successful that it seems that the $2.6 billion envelope will not last until 2027 as planned.

“The great popularity of the program and the average amount of subsidies granted to owners have exceeded all expectations and initial forecasts,” reveals Laura Thomas, of Natural Resources Canada.

She specifies that in Quebec, the program has received 74,286 applications to date and that 29,571 grants have been awarded, for approximately $109 million, or an average grant of nearly $3,700.

For the whole country, the figures are 475,000 applications, more than 120,000 grants for $575 million paid, or $4,800 on average, very close to the limit.

Until when?

“The program will continue in 2024 and will accept applications until all currently available funds are granted,” adds Ms.^me Thomas. Canadians who have already applied under the program will continue to be eligible for applicable assistance.”

The federal government, however, did not want to say when it estimates that its funds will be exhausted, nor if it is planned to reinject new sums.

“We were surprised to learn that the budgets were going to be finished soon, we are talking about the beginning of 2024. It’s certainly disappointing,” says Gabriel Ouellette, vice-president and director of energy efficiency programs at Expertbâtiment .

“We were told that the maximum had almost been reached, that they were at $2.3 billion, that it will end in 2024. We hear March, but it is not clear,” confirms Martin Gingras. This represents a headache for the owner of Réfrigération Everest, in Quebec, who no longer really knows how to present his next radio advertising campaign in January.

Popular

“It’s good news and bad news. That means it worked well. Subsidies have their positive effect. Rénoclimat has been around for a long time and it’s a great success,” opines Gabriel Ouellette.

Heat pump installers agree.

“Sales are going very well. There are several subsidies and it is certain that they play a big role,” mentions Martin Gingras.

“Before, on new houses, we installed one or two heads. With the federal program, we ended up with three heads. It gave us more work. A $5,000 grant definitely helped sales a lot. Heating and air conditioning companies did not suffer during the pandemic,” says Stéphane Miville, sales director at SGL air conditioning in Quebec.

Mr. Miville nevertheless points out that Hydro-Québec increased its subsidies last year. “It can give up to $2,800.”

The energy assessment of your residence is a prerequisite to being able to obtain a subsidy at both the federal and provincial levels. Mr. Ouellette mentions that his company has been quite busy this year, carrying out 40,000 assessments in Quebec alone.

“It is not the end of the program which is valid until 2027. What they (the federal government) are officially telling us is “we are going to stop taking registrations because we want to reserve the money for people who registered,” said Mr. Ouellette.

New amounts

The voices are unanimous in demanding that the program be refinanced.

To measure the impact of subsidies, Martin Gingras points out that for an average house, it can represent half of the $10,000 investment for a heat pump.

“We hope it continues. It’s clearly an incentive for the customer and it increases our sales,” he insists.

“If the federal government is serious in its ambitions to fight climate change, it will add money,” thinks Gabriel Ouellette. We still have hope that additional sums will be put into the program.”

“A heat pump means 30% less electricity consumption. It’s beneficial for everyone, Hydro-Québec, the installers and the customers,” insists Stéphane Miville.

The Quebec Hardware and Construction Materials Association (AQMAT), which represents an industry that also benefits from renovation programs, is also calling for the continuation of the program.

“This tells us two things. We have underestimated the needs of consumers on the one hand, and on the other hand, it is urgent that the Government of Canada announce an additional envelope,” believes Richard Darveau, president of AQMAT.

“We expect the government to be no less sympathetic to consumers’ willingness to help reduce GHG emissions than it is to helping the oil or gas industry improve in this chapter. Without subsidies, the industry – even though it pollutes a hundred times more than residential owners – will not devote enough effort or money to fight climate change. Neither do consumers,” criticizes Mr. Darveau. Backlashes

Expertbâtiment, present across Canada, employs 200 people in Quebec, half of whom are energy efficiency advisors. The latter would be 400 in all in La Belle province.

Obviously, for a company of this type, the end of the federal program is not good news.

“The impact for us will be mixed in the provinces where there are programs. It won’t be dramatic in Quebec as it can be in provinces that don’t have a program. Our advisors have developed expertise. It’s a job in itself. We want to keep these jobs. It would be a shame to lose this expertise,” said Mr. Ouellette.

Other programs

The federal government also emphasizes that other assistance continues such as the Program for the affordable conversion from fuel oil to heat pumps and the Canada Loan for Greener Homes, which allows you to borrow up to $40,000 over 10 years without interests.

“The loan works very well,” insists Gabriel Ouellette.

“It’s crazy how the loan works,” adds Martin Gingras, of Réfrigération Everest.